When Deutsche Bank hired 25 banks last summer to help it raise about $9 billion of new capital, it made some unusual selections. In addition to a handful of Wall Street stalwarts, three Italian banks made the cut. Japan’s Nomura was on the list. So was a large Austrian bank.

Large European banks including Deutsche Bank and Banco Santander are likely to fail the US Federal Reserve’s stress test over shortcomings in how they measure and predict potential losses and risks, according to people familiar with the matter.

Deutsche Bank, which last year emerged as one of the investment banks involved in a US regulatory probe into anonymous trading venues, has revamped its European dark pool in a bid to win back trust from investors.